1. Introduction
Structured settlements can offer long-term financial security, especially in cases involving personal injury claims. One of the major players in this space is AIG, operating primarily through its subsidiary American General Life Insurance Company. If you’re considering setting up or selling a structured settlement through AIG, this guide will walk you through how it works, key pros and cons, and what to expect during the process.
2. What Is an AIG Structured Settlement?
AIG structured settlements are annuity-based financial products typically offered as part of a legal settlement, most often for personal injury, wrongful death, or workers’ compensation cases. Payments are issued through American General Life Insurance Company, a wholly owned subsidiary of Corebridge Financial (formerly part of AIG).
These annuities are customizable and can provide scheduled payments over years or a lifetime. They are generally tax-free under IRS Section 104(a)(2) when resulting from physical injury settlements.
3. AIG’s Credibility & Financial Strength
AIG, via Corebridge and American General, maintains strong financial ratings:
- AM Best: A (Excellent)
- Moody’s: A2
- Standard & Poor’s: A+
These ratings reflect strong capitalization, long-term financial reliability, and stable claims-paying ability.
4. Pros & Cons of Choosing AIG
| ✅ Pros | ⚠️ Cons |
|---|---|
| High financial ratings & legacy reputation | Fixed payment schedule with little flexibility |
| Tax-free payouts under federal law | Early liquidation requires court approval |
| Tailored payout structures | Lack of inflation riders (unless specified) |
| Nationwide broker network | Not publicly transparent about rate structure |
5. Real-World Use Cases & Customer Stories
Personal Injury
Maria received a settlement after a major auto accident. Her structured settlement through AIG provides monthly income to cover ongoing physical therapy and living expenses.
Minors
AIG structured settlements are often used to protect financial assets for minors, releasing funds at predetermined ages such as 18 or 21.
Lifetime Care
James, who became disabled after a workplace incident, uses his AIG payments to fund at-home nursing and daily living support.
6. Selling Your AIG Structured Settlement
You may choose to sell part or all of your future payments for a lump sum. Here’s how it works:
Common Reasons to Sell:
- Medical emergencies
- Debt consolidation
- Home purchase or repairs
- Education costs
Process Overview:
- Get Quotes: Contact 3–5 structured settlement buyers
- Review Offers: Compare discount rates and terms
- Legal Review: Court must approve the sale under the Structured Settlement Protection Act (SSPA)
- Receive Funds: Typically within 30–45 days after court approval
Discount Rate:
- Usually ranges from 9% to 18% depending on the company and state
Tax Implications:
- While original payments are tax-free, selling them might create taxable events. Always consult a tax advisor.
7. Comparing AIG with Competitors
| Provider | AM Best Rating | Custom Options | Inflation Protection | Public Rate Info |
| AIG (American General) | A | Yes | Limited | No |
| MetLife | A+ | Yes | Yes | Yes |
| Pacific Life | A+ | Yes | Yes | Limited |
| Berkshire Hathaway | A++ | Yes | Yes | No |
8. Regulatory Framework & Protections
Every structured settlement sale in the U.S. must comply with the Structured Settlement Protection Act (SSPA) in your state. These laws protect sellers by requiring:
- Judicial approval
- Independent legal or financial advice
- Waiting/cooling-off periods (3–10 days depending on jurisdiction)
- Transparent disclosures of fees and discount rates
9. How to Decide if AIG SSA Is Right for You
Use this checklist:
- ☑ Do you want long-term financial security?
- ☑ Can you live with fixed payments?
- ☑ Do you understand the implications of selling payments?
- ☑ Have you compared multiple providers?
- ☑ Have you consulted a legal or financial professional?
If you answered yes to most, AIG may be a good fit.
10. Alternatives & Complementary Options
- Partial Sale: Sell only a portion of your payments
- Annuity Loans: Risky and often high-interest
- HELOC/Personal Loans: May be better if you have good credit
- Emergency Grants: For medical, housing, or legal emergencies
11. Step-by-Step Setup & Sale Workflows
Setting Up a Structured Settlement:
- Reach a settlement agreement
- Choose AIG as the annuity provider
- Define payment terms (monthly, annually, lump sums)
- AIG issues the annuity via American General
Selling a Structured Settlement:
- Gather payment info and contract
- Request quotes from buyers
- Choose the best offer
- Undergo court review
- Funds disbursed after court approval
12. FAQs
Q: Are AIG structured settlement payments taxable?
No, if part of a personal injury settlement under IRS Section 104(a)(2).
Q: Can I sell just a portion?
Yes, many buyers offer partial buyouts.
Q: What happens if the recipient dies early?
Depends on contract terms; some include guaranteed payments to beneficiaries.
Q: How long does it take to receive funds from a sale?
Typically 30 to 45 days post-court approval.
13. Conclusion
AIG, through its American General subsidiary, offers financially solid and tax-efficient structured settlement solutions. While it may not provide as much transparency as some peers, its reliability and product variety make it a strong choice.
Next Steps:
- Consult a licensed settlement broker
- Request comparison quotes
- Consult legal or financial advisors before selling
Disclaimer: This guide is for educational purposes only. Always consult with legal or financial professionals before making settlement-related decisions.